17.01.2015 Views

Untitled - Civic Exchange

Untitled - Civic Exchange

Untitled - Civic Exchange

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

SUSTAINABLE TRANSPORT IN HONG KONG: DIRECTIONS AND OPPORTUNITIES<br />

Table 7.2<br />

Committed and planned rail projects in Hong Kong<br />

Committed<br />

Projects<br />

Length<br />

(km)<br />

Scheduled<br />

completion date<br />

Project cost<br />

(HK$billion)<br />

West Rail Phase I<br />

Tseung Kwan O Extension<br />

Ma On Shan Rail<br />

Tsim Sha Tsui Extension<br />

Sheung Shui to Lok Ma Chau Line<br />

Penny's Bay Link<br />

30.5<br />

12.5<br />

11.4<br />

1<br />

7.4<br />

3.5<br />

End-2004<br />

Mid-2002<br />

2004<br />

2004<br />

2004<br />

2005<br />

51.7<br />

24<br />

16.3<br />

2<br />

8.5<br />

2.6<br />

Planned<br />

Projects<br />

Indicated<br />

completion<br />

Estimated<br />

cost<br />

Shatin to Central Link<br />

Island Line Extension to Western<br />

Kowloon Southern Link<br />

Northern Link<br />

Regional Express Line<br />

Port Rail Line<br />

2008-2011<br />

2008-2012<br />

2008-2013<br />

2008-2016<br />

*<br />

*<br />

27-37<br />

19-20<br />

7-8<br />

9<br />

13-17<br />

5-9<br />

* Dependent on cross-border traffic growth.<br />

Current rail financing mechanism<br />

The major rail operator, the Mass Transit Railway (MTR) Corporation is financed 80% by fares, 10% by<br />

property development rights around its stations, and 10% by miscellaneous sources, such as shop rentals<br />

in stations and advertising. The passenger rail systems in Hong Kong do not receive any direct government<br />

grants to help meet expenses. Therefore, the MTR Corporation can only build a new rail line when<br />

population densities are sufficient to ensure the commercial viability of the line from day one.<br />

In contrast, in other cities around the world, direct government grants play a major role in meeting the<br />

construction cost of new rail lines and, to a lesser degree, in meeting capital equipment and operating<br />

costs. 263 Such support is provided in recognition of the positive external (un-priced) benefits provided by<br />

off-road mass transit (less road congestion; faster, more predictable travel times; reduced air pollution and<br />

noise; and less loss of land for roads and their setbacks). Hong Kong appears to be a rare, and probably<br />

unique, case in the sense that its two passenger rail service providers are nearly self-financing.<br />

However, at all layers of government, policy-makers see the existence of rail subsidies in other parts of the<br />

world as evidence of the failure of those systems. 264 This belief seems to have clouded clear thinking on<br />

the issue of rail financing and prevented an examination of how Hong Kong could expand rail to serve the<br />

greatest possible number of people in a cost-effective manner (see Case Study 2 below).<br />

82<br />

263 Barron, W., Ng S., and Kwok, V. (2001), Financing Urban Passenger Rail: An International Survey, Hong<br />

Kong: Centre of Urban Planning & Environmental Management, University of Hong Kong.<br />

264 Rail systems in cities such as London and New York suffer from under-investment and are poorly maintained<br />

when compared to Hong Kong's newer rail system, but this should not be confused with the issue of the<br />

extensiveness of their networks.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!